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1131. Entrepreneurship in Postconflict Zones

Author:
Gayle Tzemach Lemmon
Publication Date:
05-2012
Content Type:
Working Paper
Institution:
Council on Foreign Relations
Abstract:
Economic development is a critical component of promoting stability and U.S. security interests, particularly in conflict and postconflict zones. Reviving institutions and rebuilding an economic base are among the first priorities after fighting ends and reconstruction begins. According to the U.S. Agency for International Development (USAID), negative economic shocks of just 5 percent can increase the risk of a civil war by as much as 50 percent in fragile environments. Additionally, donor assistance, which can account for 20 percent to as much as 97 percent of a country's GDP, is unsustainable in the long term. Building local business capacity and supporting homegrown entrepreneurs can help curb this risk. Research from Iraq has found that labor-generating reconstruction programs can reduce violence during insurgencies, with a 10 percent increase in labor-related spending associated with a 10 percent decrease in violence. And as Shari Berenbach, director of the Office of Microenterprise Development at USAID, argues, the development of “private enterprise is an important stabilizing force,” particularly for countries suffering from the political uncertainty and civil unrest that often characterizes the postconflict period.
Topic:
Security, Development, Economics, Emerging Markets, Foreign Aid, and Foreign Direct Investment
Political Geography:
United States

1132. Moving the EU from a Laggard to a Leader in Democracy Assistance: The Potential Role of the European Endowment for Democracy

Author:
Hrant Kostanyan and Magdalena Nasieniak
Publication Date:
06-2012
Content Type:
Policy Brief
Institution:
Centre for European Policy Studies
Abstract:
The EU has consistently stressed the primacy of democracy assistance in its pronouncements on EU external policy, but its actions have noticeably lagged behind. At the heart of the problem are the absence of available appropriate instruments, incoherent external action and convoluted decision-making procedures that require the mobilisation of unanimity and the political backing of all 27 EU member states. The Arab Spring once again highlighted the EU's inability to react swiftly and decisively to the extraordinary events unfolding in its neighbourhood.
Topic:
Democratization, Development, and Foreign Aid
Political Geography:
Europe and Arabia

1133. Growing but not transforming: Fragmented ruling coalitions and economic developments in Uganda

Author:
Anne Mette Kjær and Mesharch Katusiimeh
Publication Date:
03-2012
Content Type:
Working Paper
Institution:
Danish Institute for International Studies
Abstract:
When the National Resistance Movement (NRM) and its leader, Yoweri Museveni, came to power, they had an explicit agenda of industrializing the economy (Kjær and Muhumuza, 2009). Improved infrastructure and increased production and productivity were the focus. Indeed, Uganda enjoyed a period of sustained economic growth of about 7 percent annually between 1990 and 2006 (Piron and Norton, 2004; Kjær and Muhumuza, 2009), made possible by a stable ruling coalition, macro-economic stability, low inflation (until recently), and relative peace. Poverty declined from 56 percent in 1991 to 25 percent in 20101 However, there has been limited structural transformation in terms of a shift from agriculture to industry. A number of explanations for this could be put forward, whether institutional, policy-oriented or geographical (Selassie, 2008; van de Walle, 2001). None of them, however, explains fully how Uganda, in spite of an initially highly dedicated ruling elite, did not succeed in transforming its economy. For example, Uganda is a landlocked country, but so is Zimbabwe, which is far more industrialized. Similarly, while Uganda certainly has weak institutions, so did other countries that have succeeded in industrializing (Selassie, 2008).
Topic:
Agriculture, Development, Economics, Industrial Policy, and Post Colonialism
Political Geography:
Uganda, Africa, and Zimbabwe

1134. Continuity and change in Tanzania's ruling coalition Legacies, crises and weak productive capacity

Author:
Ole Therkildsen and France Bourgouin
Publication Date:
06-2012
Content Type:
Working Paper
Institution:
Danish Institute for International Studies
Abstract:
This paper presents analyses of the current composition of Tanzania's ruling coalition, comprised mainly of the ruling party (the CCM), the bureaucracy and the military, of how it has changed over time and of how its funding has evolved. Specifically, it discusses how historical legacies, structural changes in the economy and specific crises have influenced the composition of the ruling coalition, the holding power of its factions and the strategic use of resources to maintain its power. The paper concludes that Tanzania's ruling coalition is presently characterised by conflicts and bargaining among strong factional elites within the ruling coalition and by the increasing power of its lower level factions. Opposition parties are largely excluded from influence and remain weak. Economic entrepreneurs in the formal productive sectors are few and poorly organised. Their relations with the ruling coalition are ambiguous and largely informal, although exchanges of money and rents are of increasing importance in the relationship. Moreover, informal sector entrepreneurs and smallholders in agriculture are largely excluded from the ruling coalition. There is little evidence that the ruling coalition – despite decades of political stability – has used its position to build and strengthen the productive capacity of domestic entrepreneurs.
Topic:
Corruption, Democratization, Development, and Political Economy
Political Geography:
Africa and Tanzania

1135. Diaspora groups and development in fragile situations: Lessons learnt

Author:
Nauja Kleist and Ida Vammen
Publication Date:
07-2012
Content Type:
Working Paper
Institution:
Danish Institute for International Studies
Abstract:
Migrants send remittances three times worth official development aid to developing countries, reaching an estimated 325 USD Billion in 2012. Transnational migrant and diaspora organizations support social service, infrastructural and reconstruction projects – such as schools and hospitals – in their erstwhile home regions. Finally diaspora professionals contribute to reconstruction and development processes through temporary or long-term return. How can donors partner with them and support their contributions?
Topic:
Development, Migration, Foreign Aid, Immigration, Infrastructure, and Fragile/Failed State
Political Geography:
Europe

1136. Black Gold in the Congo: Threat to Stability or Development Opportunity?

Publication Date:
07-2012
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
Although it should provide development opportunities, renewed oil interest in the Democratic Republic of the Congo (DRC) represents a real threat to stability in a still vulnerable post-conflict country. Exploration has begun, but oil prospecting is nurturing old resentments among local communities and contributing to border tensions with neighbouring countries. If oil reserves are confirmed in the east, this would exacerbate deep-rooted conflict dynamics in the Kivus. An upsurge in fighting since the start of 2012, including the emergence of a new rebellion in North Kivu and the resumption of armed groups' territorial expansion, has further complicated stability in the east, which is the new focus for oil exploration. New oil reserves could also create new centres of power and question Katanga's (DRC's traditional economic hub) political influence. Preventive action is needed to turn a real threat to stability into a genuine development opportunity.
Topic:
Conflict Resolution, Political Violence, Development, Ethnic Conflict, and Oil
Political Geography:
Africa and Democratic Republic of the Congo

1137. Organized Crime, Conflict, and Fragility: A New Approach

Author:
Rachel Locke
Publication Date:
07-2012
Content Type:
Working Paper
Institution:
International Peace Institute
Abstract:
Transnational organized crime (TOC) is a global challenge posing serious threats to our collective peace and security. But in conflict-affected and fragile states the threats of transnational organized crime present particular and insidious challenges requiring new and innovative responses. Not only does TOC undermine the strength of the state, it further affects the critical and often contested relationship between the state and society. In fragile and conflict-affected states it is precisely the degraded nature of this relationship that often prevents progress toward greater peace and prosperity. While there is now an established correlation between conflict and state fragility, much less is understood about the relationship between transnational organized crime, conflict, and fragility. This report examines the dynamics between conflict, state fragility, and TOC, demonstrating how the three fit together in an uneasy triumvirate, and it presents ideas for a more effective response.
Topic:
Security, Corruption, Crime, Development, Poverty, and Fragile/Failed State

1138. Is There a Link Between Media and Good Governance? What the Academics Say

Author:
Mary Myers
Publication Date:
06-2012
Content Type:
Working Paper
Institution:
National Endowment for Democracy
Abstract:
Is there a link between a free media and good governance? Does the existence of a responsible, balanced press reduce corruption? Is the state more accountable in countries with a pluralistic media? Is the media democracy's magic bullet?
Topic:
Corruption, Democratization, Development, Mass Media, and Governance

1139. Armenia: An Opportunity for Statesmanship

Publication Date:
06-2012
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
After May's parliamentary elections, Armenia is preparing for a pivotal presidential vote in 2013 that will determine whether it has shed a nearly two-decade history of fraud-tainted elections and put in place a government with the legitimacy needed to implement comprehensive reform and resolve its problems with Azerbaijan. President Serzh Sargsyan has a brief opportunity to demonstrate statesmanship before he again faces the voters in what is likely to be a competitive contest. Sargsyan has demonstrated some courage to promote change, but like his predecessors, he has thus far failed to deal effectively with serious economic and governance problems, including the debilitating, albeit low-intensity, Nagorno-Karabakh war. Another election perceived as seriously flawed would serve as a further distraction from peace talks and severe economic problems. The likely consequences would then be ever more citizens opting out of democratic politics, including by emigration.
Topic:
Civil War, Democratization, Development, Economics, Financial Crisis, and Governance
Political Geography:
Armenia and Azerbaijan

1140. No Longer Poor: Ghana's New Income Status and Implications of Graduation from IDA

Author:
Todd Moss and Stephanie Majerowicz
Publication Date:
07-2012
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
Ghana's largest and most important creditor for the past three decades has been the International Development Association (IDA), the soft loan window of the World Bank. That will soon come to an end. The combination of Ghana's rapid economic growth and the recent GDP rebasing exercise means that Ghana suddenly finds itself above the income limit for IDA eligibility. Formal graduation is imminent and comes with significant implications for access to concessional finance, debt, and relations with other creditors. This paper considers the specific questions related to Ghana's relationship with the World Bank, as well as the broader questions about the country's new middle-income status.
Topic:
Development, Economics, Poverty, Foreign Aid, and Foreign Direct Investment
Political Geography:
Africa